SK IE Technology's core business is making and selling the lithium-ion battery separator (LiBS), a thin film that keeps the cathode and anode from touching directly to prevent fire and explosion, with a foldable transparent cover window (FCW) as a secondary line, so its results are heavily tied to electric-vehicle sales. Recently it has been trimming loss-making, low-efficiency lines by selling its 100% stake in the Changzhou plant in China and halting operations at the domestic Jeungpyeong plant within the year, consolidating production around Poland; the Polish plant keeps expanding, and once complete it aims to route a significant share of its 1.54 billion m² annual capacity toward ESS. What stands out is a mix of strength and caution: it has narrowed losses by cleaning up loss-making lines, the shares have fallen below a P/B of 0.5x to price in much of the downturn, and it has pivoted toward ESS, while the roughly 20% plant utilization creates a heavy fixed-cost burden, the timing of a return to profit is unconfirmed, and net debt stands at ₩1.28 trillion, making the timing of a demand recovery and rising utilization the key question.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 89.2%).
- The most recent full-year net result was a loss.
- Revenue rose 20.2% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 38.4% lower than a year earlier.
- ROE is -8.1% (controlling-interest basis). It is below the sector average.
- Operating margin is -94.1%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder SK Innovation 53.35% (corporate)
Controlling bloc incl. related parties 53.35%
With the controlling bloc holding 53%, control is very secure but the free float is thin.
🔎 In-depth analysis
- This company's core business is making and selling the 'separator (LiBS),' one of the four key materials in a lithium-ion battery.
- The separator is a thin film that keeps the cathode and anode from touching directly, preventing fire and explosion, and it is a core component that determines the safety of EV and ESS batteries.
- Most revenue comes from this separator, with a foldable transparent cover window (FCW) used in smartphones and the like attached as a secondary line.
- Its customers are automakers and battery-cell manufacturers, so the company's results are heavily driven by how many electric vehicles are sold.
- The latest close is ₩16,000 and the market cap is ₩1.3 trillion.
- The price sits below the 20-day line (₩16,898) and below the 60-day line (₩20,695).
- Trading below both the short- and mid-term moving averages, the trend looks pressured.
- The RSI (an indicator that gauges upward versus downward momentum over the past 14 days on a 0-100 scale) is 44.1, a neutral reading.
- The one-month change is -5.3%, the three-month change is -27.4%, and the price sits -53.3% from its 52-week high.
- Relative strength versus the KOSPI is 4 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market), placing it in roughly the top 97% of all stocks by strength.
- Over the past three months it lagged the index by 42.4%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- The company is currently not turning a profit, so the P/E ratio (how many times one year's earnings the price represents) cannot be calculated.
- Instead, the P/B (how many times book net assets the price represents) is 0.5x, meaning it trades at half the value of the company's net assets.
- The 2025 operating loss was ₩246.3 billion and the net loss was ₩211.4 billion, a large deficit.
- The debt ratio (debt against equity) is 69%, not overly heavy, but net borrowings (real debt after subtracting cash from total borrowings) reach about ₩1.28 trillion.
- The FCF yield (actual cash generated against market cap) is -11.8%, with cash flowing out due to expansion investment and losses.
- That said, these losses and negative cash flow should be read as figures produced at the trough of an EV demand slowdown.
- A company being fundamentally weak and a company being temporarily in the red because the industry is poor need to be read separately.
- Revenue fell sharply from ₩648.3 billion in 2023 to ₩217.8 billion in 2024, then rebounded 20% to ₩261.8 billion in 2025.
- Earnings are still in the red, but the direction is improving.
- The operating loss narrowed from ₩290.9 billion in 2024 to ₩246.3 billion in 2025, and the net loss also shrank from ₩246.6 billion to ₩211.4 billion, a narrowing-deficit trend.
- However, Q1 2026 was weak again, with revenue of ₩35.9 billion (-38% year on year) and an operating loss of ₩73.2 billion.
- The direct cause was average plant utilization falling to around 20%.
- To break this loss-making structure, the company is sweepingly restructuring its production footprint.
- The keys to earnings improvement are recovering utilization and securing ESS orders, and the company has set improvement from the second half onward as its goal.
- It has not yet confirmed and formalized a timing for the return to profit.
- Most recent filings concern 'production restructuring.' The company decided to sell its 100% stake in the Changzhou plant in China to a local firm, and it will halt operations at the domestic Jeungpyeong plant within the year.
- Both decisions are moves to trim loss-making, low-efficiency lines and consolidate production around Poland.
- At the same time, the Polish plant keeps expanding; once complete it aims to raise capacity to 1.54 billion m² per year and route a significant share of that toward ESS.
- In other words, this is a restructuring of 'cutting today's loss-making lines and concentrating where demand is reviving (Poland and ESS).'
- This name rides the industry cycle of EV and battery materials directly.
- The strengths are clear.
- The company is narrowing losses by cleaning up loss-making lines.
- The shares have already fallen below half of book net assets (a P/B of 0.5x), pricing in much of the downturn.
- The pivot toward the new ESS demand source is also a thread of recovery.
- The cautions are equally clear.
- Plant utilization is very low at around 20%, creating a heavy fixed-cost burden.
- The company has not been able to confirm a timing for the return to profit.
- Net borrowings are heavy at ₩1.28 trillion and cash keeps flowing out, so the stamina to withstand expansion investment and financial burden is the key question.
- In short, there is room for a strong rebound if EV and ESS demand recovers and utilization climbs.
- Conversely, if that timing is delayed, the losses and funding burden persist.
🔎 Valuation vs peers Inconclusive
Compared against listed companies in the EV and ESS battery-materials chain that ride the same demand cycle.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung SDI | 0.00x | 1.51x | -3.03% |
| Ecopro BM | 277.09x | 6.31x | 2.28% |
Because the company is loss-making, a P/E-based undervalued/overvalued judgment does not hold. Instead, on price versus net assets, the P/B of 0.5x is clearly lower than Samsung SDI (1.8x) and Ecopro BM (7.1x) in the same battery-materials chain. Against asset value it trades cheaply. But this low price is also the market reflecting a loss-making phase in which plant utilization has fallen to 20%. So the valuation at this point holds both 'cheap against assets' and 'uncertain when earnings will return.' Before a recovery in end demand and a normalization of utilization are confirmed, it is hard to declare it definitively undervalued, so the read is inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩16,000 and the market capitalization is ₩1.3 trillion. The price sits below its 20-day moving average (₩16,898) and below its 60-day moving average (₩20,695). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 44.1, a neutral level. The one-month change is -5.3%, the three-month change is -27.4%, and the position relative to the 52-week high is -53.3%. Relative strength versus the KOSPI is 4 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 3% of all stocks. Over the past three months it lagged the index by 42.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -42.35% / 6M -60.04% / 12M -76.18%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.50x is below the sector median (2.15x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is -8.1%, below the sector average (2.0%). The operating margin is -94.1%. The debt ratio is 68.8%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $429.7M | $144.4M | $173.6M | +20.20% ↑ faster |
| Operating profit | $33.2M | -$192.9M | -$163.3M | — |
| Net profit | $54.5M | -$163.5M | -$140.1M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $400.2M | $388.3M | $429.7M | $144.4M | $173.6M |
| Operating profit | $59.1M | -$34.7M | $33.2M | -$192.9M | -$163.3M |
| Net profit | $63.2M | -$19.7M | $54.5M | -$163.5M | -$140.1M |
| Revenue CAGR | 4-yr avg -18.85% | ||||
Revenue rose 20.2% year over year (2023 ₩648.3 billion → 2024 ₩217.9 billion → 2025 ₩261.9 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is -18.9%. The two-year revenue CAGR is -36.4%. In the most recent quarter (Q1 2026), revenue was 38.4% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- Revenue grew 20.2% year over year, a sign of growth.
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 89.2%).
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
Recent news & events searched · sourced
- 2026-05-27FilingDecided to sell its 100% stake in the operating entity of the Changzhou separator plant in China to a local firm (about ₩88.6 billion).A loss-reduction effect from cleaning up a loss-making line. A core measure in the restructuring to consolidate production in Poland. Source
- 2026-05-27FilingDecided to halt operations of the production facilities at the domestic Jeungpyeong plant within the year (business suspension).Eases the fixed-cost burden by trimming a low-efficiency, low-utilization line. Near-term capacity falls, but it contributes to defending earnings. Source
- 2026-05-13EarningsPreliminary Q1 2026 results disclosure — revenue ₩35.9 billion (-38% year on year), operating loss ₩73.2 billion, net loss ₩81.8 billion.Confirms continued losses from low utilization. An earnings rebound hinges on the timing of recovering utilization and new orders. Source
- 2026-04-29FilingDecided on a paid-in capital increase at an overseas subsidiary (the Polish production entity) — to fund the Polish expansion.Supports the restructuring around Poland-centered production and funds the expansion. It signals continued group-level investment but is also a funding-burden factor. Source
- 2026-04-22IRNotice of an investor-relations event (IR) — to explain results and the direction of the business restructuring.A venue to directly explain the production restructuring and ESS pivot strategy to the market, a channel to confirm the recovery roadmap. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Large-business-group status disclosure
- 2026-05-27Disclosure
- 2026-05-27Disclosure
- 2026-05-27Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-13EarningsFair-disclosure notice
- 2026-05-12Corporate governance report
- 2026-05-07Disclosure
- 2026-04-29Paid-in capital increase
- 2026-04-29Disclosure
- 2026-04-22Disclosure
- 2026-04-01OwnershipOwnership-change filing
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.